Textile maker Malden Mills is to be sold to Philadelphia-based private-equity firm Chrysalis Capital Partners for $44m.

The deal, which was first mooted in January, was approved by the US Bankruptcy Court in Worcester, Massachusetts on 26 February.

Malden Mills makes Polartec fleece fabrics used by international clothing brands and the US military, and wants to close the sale by next Monday in order to appease creditors.

The company has been attempting to rebuild its operations and finances following a devastating fire in 2003 and competition from low cost foreign rivals.
 
On 11 January, just-style reported that the textile maker had filed for bankruptcy for a third time and received a US$44m offer from turnaround specialist Gordon Brothers Group.

At the same time Chrysalis reportedly said it would match the $44m on the table from Boston-based Gordon Brothers.